Fred's Fireplaces enters into a contract with Miguel's Patio Supply in which Miguel's agrees to purchase 20 fireplaces. The fireplaces are delivered, but a day after delivery, Fred discovers Miguel is insolvent. Fred reclaims the fireplaces. Did Fred's Fireplaces act appropriately?
A) No because reclaiming the goods is permitted only if the quantity shipped is a large shipment.
B) No because filing a lawsuit is required before reclaiming the goods.
C) No because reclaiming the goods is appropriate in the event of breach only if the contract is for at least 50 units of goods.
D) No, because the UCC requires sellers to notify buyers within 100 days of reclaiming the goods in the event of a breach.
E) Yes, the UCC permits a seller to reclaim goods from an insolvent buyer.

Question

Quizplus · Accepted Answer

The UCC allows sellers to reclaim goods if the buyer is insolvent, without specifying a minimum quantity of goods or requiring a lawsuit before reclaiming.

Fred's Fireplaces Enters into a Contract with Miguel's Patio Supply